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HomeMy WebLinkAboutCC Minutes 1993-05-03SRCC MINUTES (Regular) 5/3/93 Page I IN CONFERENCE ROOM 201 OF THE CITY OF SAN RAFAEL, MONDAY, MAY 3, 1993, AT 7:00 PM CLOSED SESSION 1. DISCUSSION OF LITIGATION AND LABOR NEGOTIATIONS - File 1.4.1.a No Closed Session was held. IN THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, MONDAY, MAY 3, 1993, AT 8:00 PM Regular Meeting: Present: Albert J. Boro, Mayor San Rafael City Council Dorothy L. Breiner, Councilmember Michael A. Shippey, Councilmember Joan Thayer, Councilmember Absent: Others Present: Suzanne Golt, Assistant City Manager Gary T. Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk ORAL COMMUNICATIONS OF AN URGENCY NATURE Paul M. Cohen, Councilmember RE: REQUEST TO REMOVE SRCC AGENDA ITEM #10 FROM CONSENT CALENDAR FOR DISCUSSION - File 10-5 x 10-6 x 13-6 George J. Silvestri, Jr., Attorney for the Save Downtown San Rafael Committee, requested Item #10 on the Consent Calendar be pulled off and continued to the next meeting, because he had been asked about the legality of this issue without enough time to respond and this Committee would be meeting Friday, May 7, 1993. He also stated their concern with regard to the Resolution for this item accurately reflecting what had actually been done. He stated the CEQA determination was left out and the Resolution purported to include, as a finding, that there are no City funds involved in facilitating this project, but did not mention public funds. (City Council took no action.) CONSENT CALENDAR Councilmember Breiner moved and Councilmember Shippey seconded, to approve the recommended action on the following Consent Calendar items: 2 3. 4 N ITEM Approval of Minutes of Regular Meeting of April 5, 1993 (CC) Report on Bid Opening and Authorization to Purchase Two Used Vehicles (Gen.Svcs.) - File 4-2-271 x Resolution of Findings Granting Variance From Uniform Building Code Section 504 - 445 Francisco Blvd. (PW) - File 1-6-1 x 9-3-32 RECOMMENDED ACTION Approved as submitted. ADOPTED RESOLUTION NO. 8881 - AUTHORIZING THE PURCHASE OF A 9-3-65 x 9-3-30 1992 DODGE DYNASTY (USED) FROM MARIN DODGE (for Recreation Dept.) (in the amount of $11,314.87) AND A 1993 FORD TAURUS (NEW) (for Police Dept.) FROM HANSEL FORD (in the amount of $13,639.00) ADOPTED RESOLUTION N0. 8882 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL (IN ITS CAPACITY AS THE BOARD OF APPEALS) GRANT- ING CONDITIONED APPROVAL OF AN APPEAL FROM SECTION 504 OF THE BUILDING CODE AT 445 FRANCISCO BOULEVARD (Re: Building Crossing Property Line) (Infiniti) (George Dexter) Approval of Extension of Time for Subdivision ADOPTED RESOLUTION NO. 8883 - Improvements "Subdivision of Lands of Laurel EXTENDING TIME FOR THE Properties" (PW) - File 5-1-316 COMPLETION OF IMPROVEMENT WORK SRCC MINUTES (Regular) 5/3/93 Page 1 SRCC MINUTES (Regular) 5/3/93 Page "SUBDIVISION OF LANDS OF LAUREL PROPERTIES" (EXTENDED TO AND INCLUDING 5/18/94) SRCC MINUTES (Regular) 5/3/93 Page 3 7. Approval of Parcel Map - Lands of Moorhouse and Nicolaus - Between Linden Lane and Newhall Drive; AP #15-051-41 (PW) - File 5-1-319 8. Approval of Agreement with County of Marin for SRCC MINUTES (Regular) 5/3/93 Page ADOPTED RESOLUTION NO. 8884 - APPROVING PARCEL MAP OF SUBDIVISION ENTITLED "LANDS OF MOORHOUSE AND NICOLAUS"(on Linden Lane and Newhall Drive, just east of Grand Avenue) AP #15-051-41 a. ADOPTED RESOLUTION NO. Exchange of ISTEA Funding for the Merrydale 8885 RESOLUTION OF INTENT Overcrossing (PW) - File 4-13-87 x 4-8-23 x 11- 15 REGARDING THE USE OF ISTEA FUNDS BY THE CITY OF SAN RAFAEL FOR THE MERRYDALE OVERCROSSING/HIGHWAY 101 PROJECT ((1,112,500 from ISTEA Funds) b. ADOPTED RESOLUTION NO. 8886 -RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT WITH THE MARIN COUNTY REDEVELOP-MENT AGENCY FOR THE EXCHANGE OF ISTEA FUNDS (for City "Traffic Mitigation Fee", Merrydale Overcrossing Project) ($1,112,500 From ISTEA Funds) 9. Resolution Authorizing Below Market Rate (Item carried over to next Housing Agreement Between the City of San Rafael, meeting of May 17, 1993, per Housing Authority of the County of Marin and request of City staff.) Robert B. Ham, Inc. for Loch Lomond Unit 10 (Pl) - File 5-1-297 x 229 10. Resolution Denying Appeal of the Planning Commission Decision of March 23, 1993, Re: Approval of ED93-15 & UP93-16 - Use Permit and Environmental and Design Review Permit for a Temporary Office Trailer to Provide Day Services for the Homeless; 14 Ritter Street; Richard C. Bottarini, Owner; Dr. Gideon Sorokin, Appellant; Rob Simon, Human Concern Center, Applicant and Rep.; AP #11-272-13 (Pl) - File 10-5 x 10-7 ADOPTED RESOLUTION NO. 8887 - DENYING THE APPEAL BY DR. GIDEON SOROKIN OF THE PLAN- NING COMMISSION'S CONDITIONAL APPROVAL OF ED93-15 & UP93-16, WITH MODIFICATIONS TO CONDITIONS AND FINDINGS, TEMPORARY OFFICE TRAILER TO PROVIDE SERVICES FOR THE HOMELESS AT 14 RITTER STREET 12. Approval of Street Closure for Classic Car Parade, Approved staff recommendation Saturday, May 22, 1993 (RA) - File 11-19 to approve partial closure of Fourth Street, Court Street and "A" Street to accommodate the Car parade, car display and Block Party Street Dance. AYES: COUNCILMEMBERS: Breiner, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBER: Cohen S.REPORT ON BID OPENING AND AWARD OF CONTRACT FOR STREET RESURFACING - 1993 (PW) - File 4-1-459 Councilmember Thayer stated the City will be spending $627,000+ this year because of the Ghilotti bid with regard to the street resurfacing program and this amount of funds will only cover six and one-half miles of City streets. She asked how many miles of streets there were in the City and at what frequency are they repaved or resurfaced? Public Works Director Bernardi responded to the second question first by stating there was a return time period of approximately 45 years on the City streets, with verification from the Hughes-Heiss consultant's report. He noted they should be paving 10 to 15 miles of streets per year in order to get a reasonable return on the City streets. He noted they were not able to do this any sooner with the funds currently available. SRCC MINUTES (Regular) 5/3/93 Page 3 SRCC MINUTES (Regular) 5/3/93 Page 4 Councilmember Thayer stated she was receiving many complaints about this from citizens of the City and was concerned that on a 45 year cycle that many streets will deteriorate very badly and will need to be totally repaved. Mr. Bernardi responded that was the danger in having that type of recycling on some of the City streets. He noted that the other part of this question was that the City's pavement management SRCC MINUTES (Regular) 5/3/93 Page 4 SRCC MINUTES (Regular) 5/3/93 Page km system has the crews paving the streets that have much more vehicular traffic so the residential streets and the cul-de-sacs generally are always on the bottom of the list because there is not much traffic. He stated those are the streets they would be looking at for eventual reconstruction if staff does not resurface them more frequently. Mayor Boro followed up on this by stating there was roughly 150 miles of streets. Mr. Bernardi responded affirmatively. Mayor Boro then stated staff should pave these approximately every 15 years, which meant they should be paving approximately 10 miles per year. Mr. Bernardi responded affirmatively, noting that this year staff has more funds because some funds were carried over from last year, which increased the funding this year, but generally they had approximately $450,000 to $500,000 in Gas Tax Funds each year to resurface the City's streets. Mayor Boro clarified that in essence staff should be paving approximately 15 miles per year, but they are only paving six and one-half. Mr. Bernardi responded affirmatively. Councilmember Thayer asked if there were any funds available from the current State Budget in Sacramento, specifically Gas Tax funds? Mr. Bernardi responded the State was looking at this issue very closely. Mrs. Thayer asked if instead of a 45 year cycle, could the City move to a 50 or 60 year cycle? Mr. Bernardi responded affirmatively, even with the Proposition 101 funds the City has that are helping to supplement the existing Gas Tax funding. After further discussion, Councilmember Thayer moved and Councilmember Shippey seconded, to adopt the Resolution awarding the contract for street resurfacing - 1993. RESOLUTION NO. 8888 -RESOLUTION OF AWARD OF CONTRACT FOR STREET RESURFACING - 1993 TO GHILOTTI BROS. CONSTRUCTION, INC. (lowest responsible bidder) (in the amount of $627,286.11) (Project #006- 40696278000) AYES: COUNCILMEMBERS: Breiner, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen 11.PURCHASE OF SATELLITE ANTENNA AND VIDEODISC SYSTEMS FOR POLICE TRAINING (PD) - File 4- 2-273 x 9-3-30 Councilmember Breiner requested feedback with regard to the location of the satellite antenna and videodisc equipment which are to be installed on the roof of City Hall. Her concern was that it not be seen from the street or the back parking lot. Police Chief Krolak explained this was a disc approximately 10 feet in diameter made of see- through mesh material and indicated they talked with the Planning Department who stated there was no need for permits to install this antenna. He stated they would be working with the Public Works Department when they install this antenna and disc. Mrs. Breiner stated she was concerned about the appearance of this antenna from Fifth Avenue and/or Mission Street and suggested they work with the members of the Design Review Board when installing this antenna to make it the least offensive location possible. Public Works Director Bernardi stated there was a five foot parapet on the roof which will obstruct the view angles so that no one from either street can see it. Councilmember Breiner requested that a member from the Design Review Board be included in locating the proper area of the roof where the satellite and antennae will be installed in the least visible location and still be able to get the best reception possible for the Police Department. Councilmember Breiner moved and Councilmember Shippey seconded, to adopt the Resolution for purchase of satellite antennae and videodisc systems for police training. RESOLUTION NO. 8889 -AUTHORIZING THE CHIEF OF POLICE TO PURCHASE A VIDEODISC AND SATELLITE ANTENNA SYSTEM FOR POLICE TRAINING (Cost to be reimbursed by P.O.S.T. [California Commission on Peace Officer Standards and Training]) AYES: COUNCILMEMBERS: Breiner, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen SRCC MINUTES (Regular) 5/3/93 Page 5 SRCC MINUTES (Regular) 5/3/93 Page 13.PUBLIC HEARING TO REVIEW GENERAL PLAN EVALUATION; AND ADOPT NEGATIVE DECLARATION AND MISCELLANEOUS 1993 SAN RAFAEL GENERAL PLAN AMENDMENT (GPA93-1) (Pl) - File 115 x 10-6 Mayor Boro declared the Public Hearing opened. Principal Planner Hasser gave an explanation, stating most of the amendments were considered "clean-up" amendments and were fairly self-explanatory. She stated she had a correction to Item 4b, Page 7 (and Page 2 of the Resolution, Item 4a) which should refer to a change in land use policy 9 (LU -9), rather than land use policy 13 (LU -13). Mayor Boro stated Council would start with questions for clarity first and then have public input, and last, general questions from the Council. Councilmember Breiner asked with regard to Page 4 of the staff report, No. 7, "Add policy language to permit use of certain trip reserves to underdeveloped non- residential parcels; and clarify that certain trip reserves may also be used for high tax generating projects, and clarify policy C-4 trip allocations" and stated she had read the Planning Commission minutes, but she still was not sure she understood this. She indicated she wanted to feel more comfortable in what the Planning Commission was doing about this. Mrs. Hasser responded that currently the General Plan has a trip reserve specifically set aside for non-specified "underdeveloped parcels" or partially developed parcels in East San Rafael, yet the bonus trip policy, C-6, does not state that these trips, which were set aside in reserve for those parcels, could be used. She further noted that in Northgate they had a "general reserve" currently, and yet when Supercuts requested trips to build out to their full FAR (Floor Area Ratio), staff could not use that general reserve for them because there was no policy language that stated that underdeveloped parcels could use those trips. Supercuts was not a high priority use, so on the advice of the City Attorney, the Planning Commission recommended that language in Policy C-6 be amended to correspond to the trip reserve categories in the Appendix B to state that they could use those trips for underdeveloped parcels. Councilmember Breiner stated one of her concerns was equity for the total under -developed parcels and asked if these would be distributed on a "first come, first served" basis, or would they be split up in order for everyone to obtain a proportional number available to them, whether one parcel develops at year two and another expands at year two or year ten, or will the owners of the parcel waiting too far down the line then be told, even though it is underdeveloped and not at its full FAR, that everyone that came first used up the reserve? Mrs. Hasser responded this would be on a "first come, first served" basis, the same way they allocated out the high priority trip reserves. She stated they are used to the extent that those reserves are available and when the reserves are used up and there are no trips left, that option is no longer available. Mayor Boro asked if the site itself would have a certain amount of trips. Mrs. Hasser responded affirmatively and stated a partially developed site would have historic trips that have been used on that site and they would still be able to use them. Mayor Boro then stated that even an underdeveloped parcel would carry so many trips with it, too, and was it just the bonus trips Mrs. Hasser was referring to? Mrs. Hasser responded affirmatively. Councilmember Breiner asked if there was any traffic monitoring being done with regard to traffic generation in this area and stated her concern was that if any of their assumptions in traffic generation were wrong, they might not want to be looking at those trips as actually being reserved; however, they might simply be there for them to realize they have gone beyond Service Level "D" and we do not want any further development on any of the parcels included in this project. She asked if this was discussed. Mrs. Hasser responded negatively, but she thought this was a fairly significant policy change that the Council may want to consider at some other time. Mrs. Hasser explained staff has stated that those trip reserves can be used to help guarantee acceptable traffic operating conditions and, in fact, one of the actions Council was being asked to take tonight was to eliminate two of those trip reserves to guarantee acceptable traffic operating conditions, because in Northgate when they did a circulation element update they found that there had been a slight change and there was a need to eliminate those reserves. Councilmember Thayer asked for clarification with regard to floor area ratios and density limits which were usually not spoken of in the same breath because she considered density in terms of residential and floor area ratio in terms of commercial properties. She stated her concern was in looking at the historical trips combined with the reserve trips, whether the number of trips that would ordinarily be SRCC MINUTES (Regular) 5/3/93 Page 6 7 SRCC MINUTES (Regular) 5/3/93 Page allocated to a certain floor area ratio would be expanded because of the reserves that were given to it. She asked in other words, would this increase the allowable trips to any one parcel? Mrs. Hasser responded it would permit a site to develop up to a particular floor area ratio, but it would not permit them to go beyond that floor area ratio. Mrs. Hasser stated there were some properties now that are under- developed in terms of floor area ratio that do not have specific additional trips assigned to them, which is what this reserve is intended to help; however, they still would not be able to develop beyond the floor area ratio limits. Councilmember Shippey stated with regard to a statement on Page 12, the 1991 Northgate Circulation Model, that all the intersections in that North San Rafael area function within adopted LOS standards except Smith Ranch/Redwood Highway. He asked with regard to, "at build out it is planned to function below LOS 'D'", if this included the St. Vincent's/Silveira maximum build out scenario? Mrs. Hasser responded affirmatively and stated it includes everything in the General Plan; that was where the build out numbers came from. Mayor Boro asked if there was anyone in the audience wishing to address the Council on this item. There was no response and Mayor Boro closed the Public Hearing. Councilmember Thayer asked if they had taken into account the proposed expansion at San Quentin? Mrs. Hasser responded there were additional build out trips that came from outside traffic zones and she was not sure this included San Quentin or not, but staff was doing a revised and updated traffic model for East San Rafael and Downtown in which they would look at this issue. Mrs. Thayer stated her concern with regard to the expansion of San Quentin because if that uses up applicable trips in the area, what would happen to the City's Planned Priority Process with regard to development that comes forward in the future? She noted it was almost like the State had pre- empted the City's traffic trips, and was wondering if, legally, we could have a Planned Priority Process for those intersections which would be impacted. Mrs. Hasser responded that right now the City had already approved the projects that would use up all that short-term remaining capacity until the needed roadway improvements are constructed at the Bellam interchange. Mrs. Hasser noted that it was unknown if the San Quentin expansion would happen in the short term and would, or would not, affect the Planned Priority Process. Mayor Boro stated this was one of the issues they had written about to the State in their first request on the EIR (Environmental Impact Report) and the Council had also sent out a second letter to the State, approved by the Council two weeks ago, again asking for answers to these questions, along with the Board of Supervisors. He noted that until they heard from the State there was not much the Council could do. Mrs. Thayer stated she felt it could negatively affect the Planned Priority Process because it would preclude certain people from the reasonable expectation that they could develop their land. Mrs. Hasser stated this was in the short term until those improvements are constructed and after this occurred, presumably there would be adequate capacity for all development including San Quentin and other projects in San Rafael. Councilmember Breiner asked would this happen even if they were to increase the size 1000 at San Quentin? She stated she felt the impact on the community, unless there was a projection that was right on target, would be that they could find themselves with a real problem. Mrs. Thayer stated there would be a tremendous expansion of the staff at San Quentin, along with an expansion due to the numbers of prisoners who will be seeing outside visitors, etc., which would create a definite traffic impact. Councilmember Shippey stated his concern was that they did not have the traffic model updated and in place, so their comments to the State were not based on that. Mrs. Hasser stated they could ask the State to provide that information because they have done their own traffic analysis from which staff had asked them to identify those types of impacts on the City. Mayor Boro stated the concerns were valid and the Council has gone on record as to what their concerns were and they would have to wait to see what happens with the San Quentin expansion to see if it will have the impact that Mrs. Thayer spoke of. Mrs. Breiner stated that if later on staff finds out that the impact is different enough to make some changes, it could come back to Council quickly because she saw one possibility that would seem more fair, in some respects, having a proportional allotment. She stated then if they had to cut back it could be done equally. Councilmember Shippey stated he was concerned that the State's projected increase in traffic may not agree with the City's, and would like to see the City's model before accepting the State's information. Mayor Boro stated that once they had further information, possibly the plan they approve tonight would be underway and they could apply it to this project. He noted that he SRCC MINUTES (Regular) 5/3/93 Page 7 Rl SRCC MINUTES (Regular) 5/3/93 Page felt San Quentin did not have very much local political support for this expansion, so this might not happen. He noted when the City has that information then they could go ahead with what they needed to do. Mayor Boro asked, with regard to Page 13, dealing with the "Amnesty Program for illegal units. . .", for background information on this issue. He asked if it was basically stating to work up a work program to explore this possibility? Mrs. Hasser responded affirmatively and stated it was to have the Code Enforcement Section develop an Amnesty Program for consideration by the Council. She stated the Planning Commission recommended the program as a way to focus or prioritize strict abatement efforts on some more recent, "first generation" illegal units where the original owner who put in the illegal unit was still in control of that unit. She stated they could develop an approach that was stricter with those owners than with second or third generation older illegal units. She stated the primary intent was to have high fines to stop new illegal units and to prioritize the more recent ones as possibly easier to abate or make them easier to abate. Councilmember Breiner stated she was very opposed to an amnesty program for illegal units on several levels and noted that in San Francisco their Planning Commission turned it down. She stated she hoped San Rafael would do that, too; however, she felt they did need some further discussion about how the City could do Code Enforcement. She stated she was interested to hear from City Attorney Ragghianti with regard to Paragraph 3 in this section. City Attorney Ragghianti stated he did not think that the statement made in that paragraph was legally correct and noted he spoke briefly to Mrs. Hasser about this earlier this afternoon. He noted he did not believe the City would be estopped from abating an illegal unit, but by virtue of the fact that an RBR failed to note its illegality and someone bought the house thinking they could use it, this was clearly not sufficient to have estopped the City if they were to abate it, in his opinion. Mrs. Breiner noted she felt the neighborhoods would be very upset to think that there could be a wide -spread amnesty program and thought it would encourage further illegal units in the future which she did not want to see. She stated she agreed that there were many of the units that were not up to code and have not received their permits, etc., but sometimes they fade in and fade out, and if there was to be a wide -spread amnesty program it would mean that from here on out the Assessor's record and all the legal documents would show that that would be a permanent property right and all those units could never be abated which she felt was not right. Councilmember Thayer stated she agreed with Mrs. Breiner and felt the City has an adequate procedure which is in place which mandates that people who do have older units that are not legal and are allowed to legalize them under certain conditions, but it was in the form of a public hearing. She felt this would be an adequate procedure and noted that many of the illegal units in this City are in areas like Bret Harte, Gerstle Park, Terra Linda, areas that may have inadequate parking for extra tenants in front of their houses. She stated the Council has had a few of these people come before them trying to legalize units in that situation and felt that this program would encourage more of this in the future, so she was against having an Amnesty Program at all. Councilmember Shippey stated he was against this program too, and noted a concern he had with regard to the inequity that certain owners who violated the ordinances earlier would be given an unfair advantage relative to later owners who could not participate in this program. Mayor Boro recommended the Council consider, instead of an "amnesty program", adopting a program to evaluate how illegal second units can be more effectively brought into conformance. Mrs. Hasser responded this was the primary intent of this program to try to improve the enforcement and abatement of illegal units. Councilmember Breiner noted that Mrs. Hasser's explanation made more sense to her and stated she agreed with that and felt there were different possibilities in this area where a new buyer is not penalized or have a phase out period if someone attempts to legalize a unit and it does not get approved, but there is not immediate action and/or fines. She stated there is a need for a program that has fines built into it to make up for the costs involved in the Code Enforcement time. Mrs. Breiner then referred to Page 22 where the discussion of, "moderate income ownership units have been developed under a City inclusionary program with deed restrictions of 30-40 years", and stated that many of the moderate and/or affordable units have a life span, in terms of a rental life span, and she could see a problem coming up with some of these units where the time is running out. She stated she was glad to see the moderate income units are not at risk of losing their moderate income status SRCC MINUTES (Regular) 5/3/93 Page 8 SRCC MINUTES (Regular) 5/3/93 Page because the deed restriction on a unit of those ownership units is renewed each time the unit is sold and with the fast turnover of these units, they do not convert to market rate status. Councilmember Thayer stated with regard to the new designation from "Hillside Residential" to "Estate Residential" category, on Page 6, which dealt with Peacock Gap, one of the problems she had with this was did this in any way increase densities in any area? She noted in Peacock Gap, with regard to the two large lot subdivisions spoken of on Page 6, it specifically stated that this would still preclude further subdivisions and those lots were not proposed for any change; however, that statement was not carried through with regard to the others in Loch Lomond. She asked if the same would apply? Mrs. Hasser responded, in terms of existing density and sub -division potential, it stays the same and the only thing that changes is that the hillside overlay zone would be deleted from those flat and gently sloping lots. Mrs. Thayer clarified by stating that essentially it would be under a 25% slope that this new designation would apply; however, all slopes over 250, without exception, will be subject to the Hillside Residential zoning. Councilmember Shippey asked with regard to a comment on Page 5, a couple of portions of this General Plan Amendment were not included; for example, the issue of the revision of the City's In -Lieu Housing Fees - when were these issues coming back to Council and would they be in the form of another set of General Plan Amendments? Mrs. Hasser stated they were hoping to have the In -Lieu Fees resolved at the same time as the St. Isabella's General Plan Amendment, which has been recently submitted, comes forward to the Council. However, she did not know the exact time frame for this, but expected this to happen within the next six months. Councilmember Breiner moved and Councilmember Thayer seconded, to adopt the Resolution with the change on Page 3, Item 9, striking "Amnesty Program" and change the wording to "Code Enforcement Program" being the title and then develop an improved program to approve and abate illegal dwelling units, and the second change, on Page 2, Item 4(a), "LU -13" to "LU -9". RESOLUTION NO. 8890 -CERTIFYING A NEGATIVE DECLARATION AND ADOPTING THE MISCELLANEOUS GENERAL PLAN AMENDMENT (GPA93-1) (with change on Page 3, Item #9, strike "Amnesty Program" and have the wording "to develop enforcement of abatement and improvement of illegal dwelling units", and Page 2, Item #4[a], change "LU -13" to "LU -9") AYES: COUNCILMEMBERS: Breiner, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen 14.PROPOSED FINANCING REVISIONS ON BOYD COURT PROJECT (RA) - File 5-1-322 x 229 Assistant Executive Director Ours gave a brief summary of this report, stating this project, as approved by the City Council, contemplated a land lease structure whereby the homeowners would lease a proportionate share of land through a lease payment included in the monthly homeowners association payment. He stated the land lease structure has been abandoned in favor of a condominium structure whereby the land is included in the purchase price of the unit. Mr. Ours then noted the original prices were: 1) 2 units affordable to Low Income households at or below 700 of median for sale at or near $86,320; 2) 6 units affordable to Moderate Income households at or below 900 of median for sale at or near $120,600; four by virtue of $60,000 ($15,000 per unit) from the Housing Fund; and, 3) 17 units affordable to Moderate Income households at or below 1100 of median for sale at or near $135,645. He stated the questions seemed to be centered around the "Silent Second" concept which was a new concept introduced to the Council. Mr. Ours explained this concept by taking a "Silent Second", with no money in the pockets of the developer, the note is due and payable to the Redevelopment Agency and this creates a partnership between the Redevelopment Agency and the moderate income purchaser where the two entities share equally in the amount they put in and the Redevelopment Agency's money, when the unit is sold, comes back to the Agency plus the appreciation (500, for example) of the appreciated sale price. At that time the Agency would be able to qualify a new buyer and apply the appreciated money, plus the $15,000, to the unit and maintain its affordability. He stated this "Silent Second" method allowed the Agency more control and a firmer hand in maintaining affordability than the normal BMR unit agreement. The fact is that if there was a BMR unit that was going for resale and there were no purchasers for it, the resale conditions would disappear after 90 days. He stated in the past the Agency has had to step in, particularly with the Housing Authority, and loan them SRCC MINUTES (Regular) 5/3/93 Page 9 10 SRCC MINUTES (Regular) 5/3/93 Page money so they could buy the unit and then resell it, maintaining the affordability of the units. He noted this procedure had been done twice already where the Agency had to loan money for the purchases. He stated in this particular case, the Agency would continue to keep that appreciation and that would then go with the unit and give the Agency more control and affordability, because no matter how a unit appreciates, they would be partners in that appreciation. He stated if the Agency's $15,000 "Silent Second" was a higher percentage of the down payment, they participate more in the appreciation. He noted what the Agency was attempting to do in this case was to get a "Fanny Mae" loan for the property which would allow a 40 or 5% down payment so that the Agency's share of the down payment would be higher and the appreciation percentage would be higher in the resale. Mr. Ours stated the question came up the last time this item was discussed, as to what would happen if someone came into a large amount of money and wanted to pay the note off? He stated that in any long term agreement, the note would ultimately be paid off, but the Agency's "Silent Second" was due in event of a sale, not due upon pay- off of the note, so it would still be there until the property was resold. He stated if the owners became suddenly wealthy, they could not qualify back into the affordable units. He noted the buyers could pay-off the original mortgage amount, but would not be able to pay-off the $15,000 note due to the Redevelopment Agency, which would be paid at an actual sale, and at that time, whatever the sale price would be, the Agency would be participants in that amount of appreciation. Mayor Boro asked for clarification with regard to the unit going back to the Agency to control after the participation in the appreciation. Mr. Ours responded that the Agency would go back through the screening process to find another qualified income level buyer for this unit. Councilmember Thayer asked what would happen if the value of the property dropped? Mr. Ours responded it would then be more affordable. She then asked what would happen with regard to the "Silent Second"? Mr. Ours responded that money would still be due to the Agency upon the sale, so that if the price goes down the unit would be more affordable and the Agency would then own a bigger percentage of the base price. Councilmember Breiner asked, hypothetically, with regard to the comment on Page 2, in the bottom paragraph, "there is no restriction on the resale price", in terms of the market playing, who determines if the resale price of these units is too high and should the Housing Authority have to pay an inflated price? Mr. Ours responded that whatever the owner is asking for the unit and it does not sell, the price is usually dropped. Mrs. Breiner clarified her question by stating if the unit did not sell within 90 days, then could it go to market? Mr. Ours responded that was under the normal BMR agreement and that price would be determined by the Housing Authority. Mayor Boro asked if that would not happen with this approach? Mr. Ours responded affirmatively. Mayor Boro asked if that was the insurance Mr. Ours referred to that all 17 units, plus the other 8, will remain affordable with the "Silent Second" approach. Mr. Ours responded affirmatively. Mayor Boro stated on the bottom of Page 2, there was no restriction on the resale price, but the affordability of the unit is maintained by the Agency; so, in essence, the owner cannot sell it for an amount that would exceed the affordability of the unit for the next purchaser. Mr. Ours responded affirmatively, but noted what makes this happen is the "Silent Second" and the appreciation. Councilmember Breiner asked for the locations where this procedure was working. Mr. Ours responded that Novato Ecumenical Housing has had this type of program working for a number of years and has been quite successful. He stated it has not been attempted here in San Rafael, but it seemed to be a very interesting tool to control the affordability in a little different process. Mrs. Breiner asked if this was exactly the same formula as the one used in Novato? Mr. Ours responded affirmatively. Councilmember Thayer moved and Councilmember Shippey seconded, to accept the report and direct staff to prepare a revised Below Market Agreement conditioned upon City Attorney approval. AYES: COUNCILMEMBERS: Breiner, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen 15.CITY COUNCIL REPORTS: None. SRCC MINUTES (Regular) 5/3/93 Page 10 SRCC MINUTES (Regular) 5/3/93 Page 11 There being no further business, the meeting was adjourned at 8:50 PM. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF , 1993 MAYOR OF THE CITY OF SAN RAFAEL SRCC MINUTES (Regular) 5/3/93 Page 11